Charitable Gift Annuity

Did you know…

A charitable gift annuity can provide you with tax-advantaged income far greater than CDs, stock dividends or bonds. Not only that, but they generate an immediate charitable income tax deduction upon creation.

Here’s an example:

An 80-year-old woman acquired a stock many years ago for $1,000. The stock had grown in value and was now worth $10,000. She was ready to sell the stock but did not want to pay the capital gains on the $9,000 of growth. In addition, she also wanted to increase her annual income and do something for the community. After discussing her situation, we recommended that she establish a charitable gift annuity with the stock. By doing this, she achieved the following results:

• An 7.5% annuity for her entire life ($750, per year). If she lives for 12 years, the annuity payments together with the benefit of the tax deductions exceed her original contribution.
• An immediate charitable income tax deduction of $4,780.
• Deferral of the capital gains tax on the stock.
• Upon her death, an endowment will be created within the Foundation that will permanently support the community upon her passing.

Foundation Charitable Gift Annuity

Example of Single-Life $10,000 Gift Annuity

November 2022 AFR 4.8%

Age	Rate	Total Annual Payment	Tax-Free Payment	Immediate Tax Deduction
70	7.0%	$700	$423	$3,234
80	8.5%	$850	$580	$4,492
90	11.0%	$1,100	$840	$5,800

If a donation scenario like this one sounds appropriate for you, the Jewish Community Foundation has the experience and technical expertise to help. The Jewish Community Foundation can:

• Simplify the process of contributing highly-appreciated, non-publicly traded assets
• Help you realize the most favorable tax consequences with the greatest charitable impact
• Work with you and your advisor to prepare and plan for contributions in advance of a liquidity event